SB Financial Group Announces Second Quarter 2025 Results

Core Viewpoint - SB Financial Group, Inc. reported strong financial results for the second quarter of 2025, highlighting significant growth in net income, operating revenue, and loan balances, driven by strategic acquisitions and effective operational management [1][4][5]. Financial Performance - Operating revenue for Q2 2025 was $17.2 million, a 22.3% increase from $14.0 million in Q2 2024 [4][7]. - Net interest income rose to $12.1 million, reflecting a 25.6% year-over-year increase, attributed to strong loan growth and stabilized funding costs [4][5][7]. - Net income for the quarter was $3.9 million, up 23.7% from $3.1 million in the prior year, with diluted earnings per share (DEPS) increasing to $0.60, a 27.7% rise [4][5][7]. Loan and Deposit Growth - Total loans increased by $89.3 million, or 8.9%, year-over-year, with a sequential growth of $6.4 million from the previous quarter [5][14][18]. - Deposits grew by $134.6 million, or 12.1%, year-over-year, reaching $1.25 billion, bolstered by the Marblehead acquisition [5][15][19]. Noninterest Income and Expenses - Noninterest income for Q2 2025 was $5.0 million, a 15.1% increase from the prior year, driven by gains on mortgage loans and title insurance [10][11]. - Noninterest expenses rose to $11.9 million, an 11.1% increase from the previous year, primarily due to higher salary and benefit costs [12][13]. Asset Quality - Nonperforming assets totaled $6.2 million, representing 0.42% of total assets, an increase from 0.39% in the prior year [21][22]. - The allowance for credit losses was 1.43% of total loans, providing 265% coverage of nonperforming loans, indicating a conservative risk management approach [22][23]. Balance Sheet Highlights - As of June 30, 2025, total assets were $1.49 billion, with a robust loan portfolio of $1.09 billion, marking an 8.9% year-over-year increase [14][15]. - Shareholders' equity increased to $133.6 million, reflecting a commitment to enhancing shareholder value through solid earnings performance [15][30]. Strategic Outlook - The company aims to leverage its balance sheet strength and strategic resource management to support long-term growth ambitions, even amid uncertain economic conditions [17].